FINANCIAL ACCOUNTING
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ISBN: 9781259964947
Author: Libby
Publisher: MCG
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![Required information
[The following information applies to the questions displayed below.]
Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost
of $47,000. The machine's useful life is estimated at 10 years, or 390,000 units of product, with a $8,000 salvage
value. During its second year, the machine produces 33,000 units of product.
Determine the machine's second-year depreciation using the units-of-production method.
Choose Numerator:
Year
Year 2
1
Units-of-production Depreciation
Choose Denominator:
Annual Production (units)
=
=
=
Annual Depreciation Expense
Depreciation expense per unit
Depreciation Expense
0](https://content.bartleby.com/qna-images/question/1fec2421-5b3b-4052-8307-e9f0d7e0c7f6/0bfcbb49-826a-4bc4-9188-3e397ecb77a9/3yc68vs_processed.png)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost
of $47,000. The machine's useful life is estimated at 10 years, or 390,000 units of product, with a $8,000 salvage
value. During its second year, the machine produces 33,000 units of product.
Determine the machine's second-year depreciation using the units-of-production method.
Choose Numerator:
Year
Year 2
1
Units-of-production Depreciation
Choose Denominator:
Annual Production (units)
=
=
=
Annual Depreciation Expense
Depreciation expense per unit
Depreciation Expense
0
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- Mohr Company purchases a machine at the beginning of the year at a cost of $31,000. The machine is depreciated using the straight-line method. The machine's useful life is estimated to be 5 years with a $4,000 salvage value. The book value of the machine at the end of year 2 is: Multiple Choice $5,400. $10,800. $16,200. $20,200.arrow_forwardsarrow_forwardGinsberg Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $99,000. The machine's useful life is estimated at 10 years, with a salvage value of $12,900. Cost Estimated useful life Salvage value Compute depreciation expense for year Compute depreciation expense for year $99,000 10 years $12,900 1 2 Required: Determine the machine's first-year depreciation using the double-declining-balance function. Determine the machine's second-year depreciation using the double-declining-balance function. Verify the machine's first-year depreciation WITHOUT using the double-declining-balance function. Verify the machine's second-year depreciation WITHOUT using the double-declining-balance function.arrow_forward
- [The following information applies to the questions displayed below.] Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $84,200. The machine's useful life is estimated at 20 years, or 391,000 units of product, with a $6,000 salvage value. During its second year, the machine produces 33,100 units of product. Exercise 8-4 (Algo) Straight-line depreciation LO P1 Determine the machine's second-year depreciation and year end book value under the straight-line method. Choose Numerator: / Year 2 Depreciation Year end book value (Year 2) Straight-Line Depreciation Choose Denominator: = Annual Depreciation Expense Depreciation expensearrow_forwardRamirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $840,000. The machine's useful life is estimated at ten years, with a $75,600 salvage value. Determine this expensive machine's depreciation expense for each of the first 3 years under the double-declining balance method. Note: Round your answers to the nearest dollar. Annual Period First Year Second Year Third Year Depreciation for the Period Beginning of Period Book Value End of Period Depreciation Depreciation Accumulated Rate (%) Expense Depreciation Book Valuearrow_forwardReeseco inc is specialty chemical compounding company. The company has 4 high precision compounding mixers and one manual mixer. The manual mixer was purchased six years ago for $52,000. It was being depreciated over eight years using straight-line depreciation without taking salvage value into consideration. Reeseco inç has decided to sell the old mixer to another firm. Assume that depleciation is up to date. a. DATE Make the required journal entry to record the sale assuming that Kenco received 15,500 in cash for the old mixer. Make the required journal entry to record the sale assuming that Kenco received 10,000 in cash for the old system. ACCOUNT DR CRarrow_forward
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